Deadline approaching to apply for SBA Disaster Assistance Loan in Hudson County

In an effort to assist New Jersey victims of Sandy in weathering the financial fallout of the storm, the U.S. Small Business Administration is offering several types of Disaster Assistance Loans.

“We’re helping survivors to rebuild their lives after the storm,” Jessica Paul, an SBA spokeswoman said of the loans. “They’re going to help people put the money in their pockets to help rebuild their homes and business.”

The loans are available to Hudson County residents and businesses that apply for aid.

The types of low-interest loans offered include those for homeowners and renters, and several types intended to assist businesses of all sizes, Paul said.

The loan amounts range up to $200,000 for homeowners to use toward repairing property damage, and up to $40,000 for renters and homeowners to use toward affected personal property, including an automobile, Paul explained.

Businesses can receive loans of up to $2 million to use toward losses, including property damage, lost inventory and assets, and for working capital, she added.

The federally funded agency, which is partnering with FEMA, has already approved more than $57 million in loans to nearly 900 New Jersey residents and businesses who suffered losses in the storm, according to Paul.

Loans are awarded based on several factors, including the applicant’s financial situation, and interest rates range from as low as 1.68% for homeowners, 3% for nonprofits, and 4% for businesses, according to Paul.

Paul also cautioned that those who want to apply should not wait until after they settle with their insurance companies to do so.

“A lot of people are waiting for their insurance companies to settle, and if they wait, we’re just afraid that they’re going to miss out on this opportunity to receive this loan,” she explained.

Paul added that, if need be, the SBA would work with insurance companies after any settlements are paid out to help recipients put that money toward any SBA loans received.

Those interested in applying can do so by visiting https://disasterloan.sba.gov/ela . The phone number for the field operations center is (800) 659-2955. The deadline to apply is Jan. 31.